US: Congress Passes Students Loans, Transportation Jobs Bill

The
bill passed 373 to 52 in Republican led House and 74 to 19 in Democratic led
Senate. All the President Obama has to do now is to sign it into law.

Transportation

The
bill aims to increase transportation spending by $105bn, which can potentially
create, or at least save, up to 3 million jobs.

The
politicians managed to pass the bill, just within the deadlines. The federal
government spends nearly $50bn each year on transportation. The previous transportation
bill expired almost three years ago, in 2009. Since then, the industry has been
surviving on funding extensions, the last of which ends today, 30th
June.

Student Loans

The
issue of student loans was also nearing its own deadline. The bill prevents the
federal student loan interest rates from increasing to 6.8% from the current
3.4% from 1st July, representing a 100% increase. Accordingly, the
interest rates would remain at 3.4% for another year, as the government injects
$6bn into the program, most likely, by increasing premiums for federal pension
insurance.

Both
Democrats and Republicans were unanimous in keeping the interest rates for federal
student loans to their current levels; the debate was, instead, focused on how
the target is to be achieved.

Commenting
on the bill, the White House spokesman Jay Carney said, “"Thanks to
Congress heeding that call today, millions of American students will avoid a
$1,000 debt hike while millions of construction workers will be able to stay on
the job,"

Flood Insurance

The
bill has also extended the National Flood Insurance program to 30th September,
2017, as the government braces itself for a new hurricane season expected to
begin from late July. Interestingly, the previous program was supposed to
expire in July 2012, right in the middle of the hurricane season.

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